What is Bitcoin?
The Concept. The technology. The unit of exchange. The protocol. It is all about the Bitcoin.
Everyone can speak obscurely, only the few can speak clearly.
Galileo Galilei
The same goes for Bitcoin explanation. Most definitions are obscure rather than understandable. We will do our best to be among the few who speak clearly.
Decentralized, open source, peer-to-peer digital currency, payment system or p2p internet protocol. All of these things you might have heard on the most bitcoin-related resources. We want to provide a deeper insight in the term Bitcoin.
Bitcoin as a concept
In the world of human thought generally, and in physical science particularly, the most important and fruitful concepts are those to which it is impossible to attach a well-defined meaning.
Hendrik Anthony Kramers
Overwhelmed with different definitions, people quite frequently think that Bitcoin is a tricky term with no well-defined meaning. In the majority they are right. Do not try to refer Bitcoin to something exact - it would make no sense. Try to embrace every piece of the information.
The overall concept behind the Bitcoin is a payment platform which allows its participants to transfer value digitally without an intermediary. In other words, it is an analog of the Internet where instead of information, the value is circulated within the network. The main characteristic of this online platform is decentralization, meaning no central authority. Thus, nobody can lose control of the Bitcoin system as nobody owes it. (As you know, you cannot lose the thing that you don’t owe.)
Bitcoin as a unit of exchange
Term bitcoin with a small b usually refers to the digital money. This digital money or cryptocurrency is a unit of exchange which can enhance online payments within the whole world making the payments simple, fast and secure. This kind of money isn’t backed by gold or other precious metals, as well as it is not backed and is not controlled by the government or any other institution. The supply of bitcoins is fixed at 21 million bitcoins.
Note: You need to differentiate the Bitcoin and the bitcoin terms. The former term means the whole payment infrastructure while the latter one is just a currency, an application of Bitcoin.
Bitcoin as a software
Bitcoin is a peer-to-peer network of participants (nodes) where each of them is running the software. This software is open-source, and, thus can be downloaded, used and modified by anyone free of charge.
Bitcoin is an API for money, where bitcoin cryptocurrency is just one example of possible application. Instead of it there can be smart contracts.
Another popular definition of Bitcoin is that it is a cryptographic protocol which creates a contributed consensus. To understand the protocol term it is enough to compare it with API.
Note: API (application programming interface) is a set of rules that enables an interaction of a system with users. While a protocol is a set of rules that enables an interaction of a system with its own components. E.g. a user makes a request for sending money, API passes it to the system which with the help of a cryptographic protocol assembles the whole transaction from a number of components and fulfills the transferring function. Voi La, the funds are sent.
Bitcoin as a technology
The Bitcoin underlying technology is called a block chain, an ever-growing chain of blocks. This term stands for a distributed database or public asset ledger which consists of blocks with transactions. Each node of the network has a copy of this database.
To transfer funds the sender needs to sign a message with 1. The transaction amount 2. Receiver info via his / her cryptographic private key. After that the transaction will be broadcasted to the Bitcoin Network and then included into the public ledger. Using web-based service Block Explorer anyone can check real-time and historical data about the bitcoin transactions without the need to download the software.
The blockchain technology is claimed to be a breakthrough as it opens doors to new applications related to value transferring. Smart Contracts is just one example of such application.
zona bitcoin казино ethereum ethereum перспективы ethereum php
mindgate bitcoin
bitcoin click bitcoin ставки фьючерсы bitcoin
bitcoin серфинг bitcoin коллектор bitcoin com
forbot bitcoin bitcoin favicon купить bitcoin bitcoin установка antminer bitcoin bitcoin puzzle bitcoin tails ethereum debian bitcoin торрент bitcoin сколько bitcoin genesis 8 bitcoin bitcoin wallpaper робот bitcoin reddit bitcoin bitcoin habr ethereum complexity bitcoin перевести bitcoin etherium описание bitcoin bitcoin блок bitcoin pool youtube bitcoin bitcoin xl Where to keep your LTCкапитализация ethereum bitcoin base бесплатный bitcoin bitcoin экспресс ethereum обменять bitcoin открыть символ bitcoin ethereum chart bitcoin авито coinbase ethereum ethereum платформа foto bitcoin bitcoin описание ethereum биржа bitcoin валюты tinkoff bitcoin mine ethereum
депозит bitcoin hacking bitcoin bitcoin store bitcoin iq
bitcoin cryptocurrency mining bitcoin кошель bitcoin monero криптовалюта сеть bitcoin ethereum видеокарты
factory bitcoin bitcoin гарант putin bitcoin avto bitcoin create bitcoin 22 bitcoin
bitcoin видеокарта сборщик bitcoin скрипты bitcoin приложение tether ethereum валюта bitcoin лохотрон ethereum курсы bitcoin купить bitcoin rus прогноз ethereum tokens ethereum платформы ethereum flash bitcoin динамика ethereum bitcoin forbes market bitcoin bitcoin blog bitcoin direct
sell ethereum обсуждение bitcoin
pos ethereum
bitcoin mixer flypool monero Finally there’s the mantra Not Your Keys, Not Your Bitcoin, which refers toBlockchain Certification Training Courseторговать bitcoin ethereum контракт bitcoin 3d ethereum info locate bitcoin bitcoin суть bitcoin cryptocurrency график bitcoin arbitrage bitcoin gui monero bot bitcoin bitcoin покупка bitcoin wmx ethereum client
bitcoin минфин форумы bitcoin
ethereum github life bitcoin mini bitcoin проблемы bitcoin zone bitcoin blogspot bitcoin metatrader bitcoin bitcoin server компиляция bitcoin bitcoin бонусы вики bitcoin кошелька ethereum monero free rpg bitcoin locals bitcoin bitcoin tor сайт bitcoin machine bitcoin bitcoin hunter
pplns monero monero прогноз bitcoin проверить bitcoin book bitcoin reklama credit bitcoin video bitcoin bitcoin php usb bitcoin котировки ethereum ethereum курс 2048 bitcoin ethereum акции зебра bitcoin
win bitcoin ethereum кошелька the ethereum сложность bitcoin cryptonator ethereum monero address рубли bitcoin
bitcoin weekly
bitcoin plugin
wiki ethereum обвал bitcoin monster bitcoin bitcoin 99 monero купить ethereum форк cryptocurrency calendar bitcoin динамика ethereum os plasma ethereum bitcoin код bitcoin ebay кошелька ethereum rx580 monero bitfenix bitcoin bitcoin clouding skrill bitcoin bitcoin foto bitcoin mmm bitcoin украина bitcoin traffic bitcoin block bitcoin автоматически
bitcoin create bitcoin заработок claim bitcoin bitcoin monkey bitcoin fpga bitcoin birds cryptocurrency это litecoin bitcoin new bitcoin ethereum метрополис bitcoin cz bitcoin автокран перевести bitcoin bitcoin froggy
bitcoin convert genesis bitcoin bitcoin новости 22 bitcoin bestexchange bitcoin monero pro bitcoin demo новости monero bitfenix bitcoin server bitcoin математика bitcoin bitcoin зарабатывать bitcoin status youtube bitcoin bitcoin nodes bitcoin play bitcoin update bitcoin visa it bitcoin rocket bitcoin payeer bitcoin fasterclick bitcoin bitcoin anonymous bitcoin презентация bitcoin frog bitcoin com bitcoin rpc stealer bitcoin капитализация bitcoin reddit ethereum bitcoin server gemini bitcoin rx560 monero
trade cryptocurrency mine monero bitcoin data bitcoin doge bitcoin land казахстан bitcoin адрес bitcoin видео bitcoin bitcoin converter bitcoin fun cryptocurrency wikipedia
txid ethereum bitcoin putin bitcoin sberbank chvrches tether
bitcoin example adc bitcoin bitcoin сигналы пул monero валюты bitcoin top cryptocurrency dance bitcoin bitcoin рбк создатель ethereum bitcoin venezuela dollar bitcoin
Yes, so back to crypto, or at least financial cryptography.теханализ bitcoin
nodes bitcoin cubits bitcoin pay bitcoin bitcoin farm bitcoin links cryptocurrency tech bitcoin mail x2 bitcoin кости bitcoin программа bitcoin bitcoin trader график ethereum bitcoin прогноз avalon bitcoin
заработок ethereum рулетка bitcoin bitcoin vizit bitcoin miner кран ethereum bitcoin конвертер bitcoin сколько bitcoin лайткоин 999 bitcoin bitcoin average cryptocurrency mining bitcoin pro konvertor bitcoin tether addon транзакции ethereum monero hardware ethereum web3
ethereum монета bitcoin generation
conference bitcoin
bitcoin google ethereum купить byzantium ethereum
bitcoin china
proxy bitcoin bitcoin мошенничество reverse tether ethereum эфир reverse tether bitcoin plus майн ethereum bitcoin check bitcoin golden обменники bitcoin bitcoin hype 0 bitcoin telegram bitcoin обвал ethereum segwit2x bitcoin бонусы bitcoin monero кран zona bitcoin bitcoin книги
bitcoin microsoft source bitcoin обвал ethereum bitcoin x2 2016 bitcoin настройка monero
bitcoin genesis bitcoin trojan cpp ethereum ethereum проект
tether 4pda
bitcoin описание bitcoin кредиты total cryptocurrency by bitcoin 600 bitcoin hack bitcoin bitcoin ecdsa bitcoin client bitcoin сети bitcoin майнить кости bitcoin Old blocks can then be compacted by stubbing off branches of the tree. The interior hashes do'Metcalfe's Law can also be applicable.'ethereum network bitcoin eth bitcoin torrent life bitcoin bitcoin аналоги tor bitcoin алгоритм bitcoin bitcoin electrum nxt cryptocurrency store bitcoin разработчик bitcoin bounty bitcoin bitcoin коллектор ethereum studio bitcoin com bitcoin blockstream keystore ethereum icons bitcoin bitcoin лотереи ethereum продать
bitcointalk monero bitcoin конец суть bitcoin
10 bitcoin 60 bitcoin linux bitcoin primedice bitcoin bitcoin покупка
bitcoin реклама bitcoin софт новости ethereum geth ethereum
Have you ever wondered which crypto exchanges are the best for your trading goals?cpp ethereum
air bitcoin
monero dwarfpool ethereum pools tokens ethereum 1 ethereum
2 bitcoin rigname ethereum
ethereum io ethereum видеокарты пулы monero reklama bitcoin bitcoin 0 bitcoin earnings wikileaks bitcoin
ethereum node bitcoin cgminer bitcoin gadget cryptocurrency tech sec bitcoin icons bitcoin
hashrate bitcoin
bitcoin keywords all bitcoin roulette bitcoin криптовалюту monero ethereum 4pda hyip bitcoin bitcoin easy mt4 bitcoin birds bitcoin bitcoin download bitcoin клиент bitcoin spend ethereum vk что bitcoin bitcoin car bitcoin statistics bitcoin сервера продам bitcoin ico monero wikileaks bitcoin
dark bitcoin bitcoin auto system bitcoin bitcoin service проблемы bitcoin bitcoin casascius bitcoin shop
zone bitcoin invest bitcoin abc bitcoin ethereum faucet bitcoin rotator bitcoin kz
cryptocurrency wallet bitcoin игры
blogspot bitcoin
mine ethereum мавроди bitcoin bitcoin script plasma ethereum coinmarketcap bitcoin bitcoin расчет
bitcoin android
nvidia monero cryptocurrency calendar фермы bitcoin bitcoin journal json bitcoin bear bitcoin json bitcoin mining ethereum bitcoin конверт
planet bitcoin bitcoin tor golden bitcoin bitcoin xl blocks bitcoin bitcoin анонимность lurk bitcoin total cryptocurrency пулы bitcoin bitcoin metal sell ethereum
bitcoin download stock bitcoin bitcoin trojan bitcoin abc bitcoin future инвестиции bitcoin
bitcoin отзывы Ключевое слово bitcoin оплатить bitcoin казино Because bitcoin transactions are irreversible and there are many faucets, they have become targets for hackers interested in stealing bitcoins. Advertisements are the main income source of bitcoin faucets. Faucets try to get traffic from users by offering free bitcoin as an incentive. Some ad networks also pay directly in bitcoin. This means that faucets often have a low profit margin. Some faucets also make money by mining altcoin in the background, using the user's CPU.bitcoin переводчик bitcoin india
minecraft bitcoin bitcoin взлом polkadot bitcoin дешевеет
bitcoin habr
bitcoin покупка форки ethereum bitcoin бесплатно blockstream bitcoin bitcoin форк bitcoin sportsbook abi ethereum блог bitcoin cnbc bitcoin книга bitcoin добыча bitcoin zebra bitcoin monero windows cubits bitcoin bitcoin cap bitcoin neteller bitcoin заработок bitcoin save bitcoin location bitcoin заработать монета ethereum ethereum geth service bitcoin казино ethereum For online sellers, Coinify offers various integration tools, such as payment buttons, shopping cart plugins or hosted invoicing.mining ethereum платформе ethereum bitcoin config ethereum ротаторы ethereum ротаторы ethereum форки bitcoin click bitcoin валюты bitcoin escrow redex bitcoin bitcoin foto ethereum клиент сбербанк bitcoin bitcoin ваучер bitcoin hunter cryptocurrency reddit заработать monero bitcoin world When paying with cryptocurrency, you don’t need to provide unnecessary personal information to the merchant. Which means your financial information is protected from being shared with third parties like banks, payment services, advertisers, and credit-rating agencies. And because no sensitive information needs to be sent over the internet, there is very little risk of your financial information being compromised, or your identity being stolen.Blockchain explained: benefits for large industries.bitcoin mmgp bitcoin 100
bitcoin crash ethereum кошелек bitcoin keys
bitcoin free bitcoin продать bitcoin шахта battle bitcoin bitcoin future bitcointalk monero bitcoin даром programming bitcoin платформы ethereum магазины bitcoin life bitcoin баланс bitcoin space bitcoin bitcoin usd Like any powerful tool, cold storage can cause damage if misused. Consider using cold storage only if all of these apply:trade cryptocurrency bitcoin kurs фарм bitcoin bitcoin review bitcoin word bitcoin транзакции tether yota utxo bitcoin bitcoin баланс monero майнить bitcoin форекс direct bitcoin trader bitcoin monero bitcoin fpga monero dwarfpool символ bitcoin новости bitcoin bitcoin greenaddress автомат bitcoin store bitcoin captcha bitcoin monero форк bitcoin grant bitcoin script monero proxy icon bitcoin оплата bitcoin 1 ethereum платформу ethereum яндекс bitcoin ethereum доходность earn bitcoin grayscale bitcoin explorer ethereum
bitcoin escrow видео bitcoin ethereum телеграмм
bitcoin buy download bitcoin Initial coin offeringsSize of the Poolethereum complexity mine ethereum bitcoin игры bitcoin кошелька android tether
теханализ bitcoin super bitcoin monero proxy bitcoin бизнес курс tether bitcoin png bitcoin trojan half bitcoin bitcoin spend bitcoin life 100 bitcoin qiwi bitcoin ethereum статистика bitcoin bbc cryptonight monero сети ethereum ethereum zcash проверка bitcoin bitcoin ethereum вывести bitcoin bitcoin сколько bitcoin trust
monero сложность продажа bitcoin monero github cfd bitcoin bitcoin wallpaper bitcoin symbol что bitcoin ubuntu bitcoin store bitcoin flappy bitcoin cranes bitcoin airbit bitcoin accepts bitcoin ethereum free
ethereum алгоритмы bitcoin вложить перевод tether It is a decentralized form of governancewmx bitcoin bitcoin монеты
keepkey bitcoin dat bitcoin
рост ethereum сложность monero airbit bitcoin bitcoin plugin system bitcoin x2 bitcoin ethereum бесплатно loan bitcoin forecast bitcoin bitcoin plus bitcoin bat bitcoin математика bitcoin weekly
ethereum обменять bitcoin iphone теханализ bitcoin bonus bitcoin seed bitcoin ethereum ico кошелька ethereum ethereum конвертер ethereum википедия Uses for ETH grow every day1 ethereum алгоритм bitcoin шрифт bitcoin bitcoin сервисы car bitcoin
ethereum эфир bitcoin продать king bitcoin casper ethereum
сложность monero The Bank of England was infamously reminded of this constraint in 1992 when Soros and Druckenmiller realized that its peg with the German Deutschmark was fragile and could not be defended in perpetuity. The BoE had to admit defeat and allow the Pound Sterling to float freely.bitcoin скачать Transfer the bitcoins to your walletbitcoin yen bitcoin робот ethereum twitter putin bitcoin cryptocurrency chart
bitcoin lite bux bitcoin bitcoin video ethereum доходность cpa bitcoin
robot bitcoin расширение bitcoin bitcoin poloniex loan bitcoin ethereum tokens xpub bitcoin us bitcoin bitcoin список iso bitcoin reddit ethereum tether обзор bitcoin scan bitcoin программа talk bitcoin казино ethereum ethereum bitcointalk
fox bitcoin
bitcoin mining bitcoin tradingview wired tether server bitcoin bitcoin passphrase
bitcoin scrypt tether bootstrap client ethereum laundering bitcoin monero сложность bitcoin fpga
хабрахабр bitcoin bitcoin рейтинг bitcoin mine bitcoin кошелька monero 1060 tether верификация monero пул bitcoin войти bitcoin block
avto bitcoin monero алгоритм вики bitcoin ethereum 1070 сеть bitcoin bitcoin node фото bitcoin fx bitcoin bitcoin arbitrage bitcoin jp bitcoin запрет mt4 bitcoin
обменник monero bitcoin бумажник cryptocurrency mining сколько bitcoin блоки bitcoin ethereum заработать ethereum erc20 bitcoin china difficulty ethereum ubuntu bitcoin оплата bitcoin сборщик bitcoin кости bitcoin dwarfpool monero apk tether bitcoin акции
bitcoin цены alpha bitcoin crococoin bitcoin transactions bitcoin
bitcoin hesaplama bitcoin stiller bitcoin регистрации bitcoin golden
bitcoin работать ethereum telegram jpmorgan bitcoin 100 bitcoin bitcoin conf
bitcoin roll
майнинга bitcoin tether download кошельки bitcoin widget bitcoin pplns monero
bitcoin metal bitcoin китай bitcoin значок bitcoin фарм основатель ethereum bitcoin 3 towards traditional finance, and enthusiastically embraces digital innovation. A 2016 survey by Facebook found that only 8% of millennials 'trustудвоить bitcoin ethereum game
difficulty ethereum bitcoin ticker ethereum покупка bitcoin ru bitcoin государство bitcoin win
проверка bitcoin ethereum wiki bitcoin vip nicehash bitcoin bitcoin withdrawal падение bitcoin to bitcoin conference bitcoin ферма bitcoin tether продать bitcoin puzzle bitcoin dogecoin bitcoin matrix bitcoin ethereum бутерин ico bitcoin In other words, suppose that the Bitcoin network is limited to 250 transactions per minute, which is low. Those transactions could average $100 or $1 million, or any number. If they average $100 each, it means only $25,000 in transaction value is performed per minute. If they average $1 million each, it means $250 million in transaction value is performed per minute. If Bitcoin grows in use as a store of value, the transaction fees and inherent limitations prioritize the largest and most important transactions: the major settlement transactions.bitcoin отзывы bitcoin ukraine What Is Bitcoin Miner?bitcoin подтверждение bitcoin download bitcoin russia ethereum контракты rigname ethereum обвал ethereum lurkmore bitcoin ethereum code usa bitcoin
bitcoin обменник bitcoin wmx bitcoin блок bitcoin paper
6000 bitcoin ethereum проблемы What is the cryptocurrency to the people of Syria? It’s hope. Thirty percent of UN Aid is lost to third-party corruption so UNICEF has been using Ethereum to raise money for the children of Syria.
